Insurance policies can sometimes be difficult to navigate, especially if you’re going at it alone. Palo Alto-based startup Next Insurance is on a mission to make the purchasing process easier for small business owners, contractors and those that are self-employed.
The Next Insurance platform leverages AI and machine learning to simplify the purchasing process for over 100,000 customers. The company’s six insurance offerings include general liability, professional liability, commercial auto and workers’ compensation coverage.
The company announced Wednesday it raised $250 million in a Series D round to help expand its coverage options to thousands across the country. The latest cash infusion brings the unicorn’s valuation to over $2 billion.
“Many in the small business community are struggling amid a global pandemic and economic crisis, we need to continue to do what we can to help them through this difficult time so that our economy can emerge even stronger on the other side,” co-founder and CEO Guy Goldstein said in a statement.
Next Insurance offers coverage specifically tailored for 1,300 types of businesses ranging from finance to construction to retail and more. The company claims that clients can get a quote in less than five minutes and pay monthly at no extra cost.
Earlier this month, the company launched tool and equipment insurance for contractors and cleaning businesses with general liability insurance. The company also launched hired and non-owned auto (HNOA) coverage for businesses that use rented or employee-owned vehicles for work.
According to the company, the new funding will be used to develop new products and improve existing coverage options. Next Insurance plans to hire over 200 new employees over the course of the next year and a half. The company is now hiring for 11 open positions across several departments, including roles in marketing, engineering, operations, product and design.
“Insurance is a market primed for a new approach — one that believes it is a social good and cares for its customers,” Goldstein continued. “We believe we have the right team, the right approach and the right products to enable us to lead the shift in this industry.”
Next Insurance has raised $631 million in venture capital financing to date, according to the company. In addition to its headquarters in Palo Alto, Next Insurance also has offices in Austin and Israel.
Additional investors FinTLV and Munich RE Group participated in the round.
